Overview
The Reallocation Report in CoinTracking lets you define a fixed snapshot point (for example, the end of 2023) and use that snapshot as the starting basis for all future calculations. This approach ensures your results remain consistent even if new transactions are imported later. It is especially useful when switching between depot separation and non-depot separation, as it reassigns holdings automatically and prevents warnings. Importantly, snapshots never delete data; they simply set a cutoff point for calculations.
Generating a Tax Report
To begin, go to the Tax Report page. If you’ve always used one accounting method, select it with the relevant settings and generate the report. If you’ve used multiple methods across different years, choose the Multi-method option and configure each year individually.
Loading the Reallocation Report
After your tax report is ready, click Load Report. At the bottom, under Closing Position Report, you will find the option for Reallocation Report.
When you generate it for the first time, CoinTracking checks for any transaction changes since the last tax report.
If changes are found, you should regenerate the tax report to keep everything in sync.
If no changes are detected, you can move forward and calculate your holdings from the snapshot onward.
Handling Warnings
Switching from no depot separation to depot separation (or the other way around) can sometimes produce warnings. These are often caused by transfers being logged in the wrong order (for example, a deposit entered before the withdrawal) or mismatched exchange names.
If warnings appear, validate your account using the steps in How to validate my account?. Because reallocation covers many possible scenarios, it is complex and not guaranteed to be error-free. If you run into problems, our Full Service Team can assist, and they can also connect you with tax advisors if needed.
Clear Reports
If no warnings are shown, you can proceed directly with setting up your reallocation preferences. At this stage, the system is ready to apply your chosen method consistently across all holdings.
Reallocation Settings
You can decide how reallocation should be sequenced. Options include:
HPFI (Highest Price First In): assigns the highest purchase price to the earliest holding.
HPLI (Highest Price Last In): assigns the highest purchase price to the most recent holding.
FIFR (First In, First Received): allocates based on the oldest recorded transaction first.
Cold Wallets can also be given special priority. These are not limited to hardware wallets but include any low-frequency storage. If you mark a wallet as “cold,” the allocation will favor that wallet with the oldest or lowest-priced holdings, while newer or higher-priced holdings are assigned elsewhere.
After choosing your allocation settings, you can download the reallocation report:
Using the Report in Future Years
Once you create a snapshot (e.g., for 2023), it becomes the foundation for your next year’s tax reports. Even if you continue importing new transactions in 2024, you can always base calculations on the fixed 2023 state, ensuring stability and consistency in your reports.
